Australia’s biggest footwear retailer Accent Group | Australian Markets
The company behind in style footwear retailers Hype, The Athlete’s Foot and Platypus has warned the optimistic gross sales trajectory recorded post-Christmas has deteriorated in additional proof of a cautious shopper.
Shares in Accent Group plunged 21.6 per cent to $1.415 simply earlier than 10am on Friday following a adverse trading replace to the Australian Securities Exchange after the market closed on Thursday.
Accent — with a market capitalisation of over $1 billion — mentioned low total growth within the life-style footwear market from March to early June had impacted gross sales in each the retail and wholesale segments. Between March and June, gross sales growth slumped 2.5 per cent.
The company had beforehand reported gross sales growth within the seven weeks to February 16 was up 2.2 per cent on the prior yr. But in its latest trading replace, Accent mentioned like-for-like gross sales for the 23 weeks to June 8 have been down one per cent.
Between March and June, gross sales growth slumped 2.5 per cent.
“The prevailing promotional environment, along with a disciplined focus on managing inventory levels in a lower sales environment, continues to put pressure on gross margins,” Accent mentioned.
Accent — which has 900 shops throughout Australia and NZ and in addition owns manufacturers Nude Lucy, Stylerunner and Glue Store — mentioned gross margin for the second half so far was down 80 foundation factors, affected by increased promotions.
The retailer expects group earnings for the complete yr to hit between $108 million and $111m, in contrast with the $110.4m reported within the 2024 financial yr.
Accent will release its full yr outcomes on August 22.
The trading replace from Accent got here as directors of collapsed footwear model Wittner revealed they have been in talks with world retailer The Shoe Group for a potential rescue deal.
Privately-owned The Shoe Group already owns in style footwear manufacturers like Everflex, which sells college footwear, Ipanema, Jo Mercer, Spendless Shoes and Novo.
In a assertion on Friday, the directors mentioned it had entered into a period of exclusivity with The Shoe Group for the proposed sale of the bulk of Wittner.
Wittner grew to become the latest retailer to succumb to a pullback in discretionary spending, with Deloitte restructuring companions Sal Algeri and David Orr appointed as directors in April.
Mr Orr on Friday mentioned the proposed sale would ship a optimistic consequence for all stakeholders, together with staff, collectors, landlords and concession companions.
The Shoe Group chair Ian Unwin mentioned it was excited concerning the alternative to convey Wittner into the business.
“It is a brand with a proud legacy and strong customer following and we look forward to supporting its continued success,” he mentioned.
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